Nat gas, Ung, Chk and the like have taken on the chin for almost 18 months with no let up:
4th warmest winter on record. Several 60 plus degree days in NYC and the like Jan 11
Drops to 1.75 or so with warnings of negative
Chk balance sheet falls apart
Storage to near capacity by November
A relatively mild Dec 2012
Now as the year ends the sector takes another shot due to fiscal cliff.
An incredible 18 months but now.....
EPA Chief gone and with it the green agenda which will be replaced with a growth agenda
3 solid upcoming months of withdrawal and during this time a normal to possibly colder winter
In next 30 days we'll certainly go under last years storage average
With some weather and consumption luck we'll fall UNDER the five year average. When that possibility arises the cycle will be broken.
The tipping point will come when a 1-5 Billion nat gas co is taken out in the 1st Q at a hefty premium.
You just started ebuary 13 contracts and the weather looks colder then last year in the coming weeks, but when January 28th comes you are in March 13th contracts which usually no one bid NG higher at the end of January knowing March contracts are cheaper. Also no i dont think we will go under the 5 year supply inventory, we are already over 400 BCF above the 5 year average and 80 BCF higher then last year and that extra 80 BCF will help cover 2 to 3 colder weeks for this year.
i agree. natural gas is now used more and more to generate electricty. Natural gas will be going through more and more huge pipelines to be constantly burned at the end to generate more electricity. we will soon export any surpulas, it will be used as fast as produced. I will buy a ngv when the prices come down. this stock is a no brainer. im all in. The USA has more ng then the rest of the world. why send our money to countrys who want to kill us??? we are a sleeping giant and just need to wake up.